November 15, 2024
Fed Chair Jerome Powell Cools Down Crypto Market
Hawkish comments from U.S. Federal Reserve Chair Jerome Powell have put pressure on the cryptocurrency market. A rate cut in December no longer seems certain, with the odds dropping from 83% to 62% following Powell's speech at a conference in Dallas. He stated, "The economy is not sending any signals that we need to be in a hurry to lower rates.”
In the wake of these remarks, the price of Bitcoin (BTC) fell about 1.5%, dipping further to down 3.2% over the past 24 hours. Ethereum (ETH) also experienced a similar decline, while the CoinDesk 20 Index rose 0.5%, boosted by a 13% increase for Ripple (XRP). Traditional markets reacted as well, with the Nasdaq dropping 0.75% just before the close of the trading day.
In addition, the impact of this statement also influences market sentiment regarding high interest rates and stability, specifically:
Concerns Over High Interest Rates: With interest rates not expected to decrease, borrowing costs will remain high, potentially making investors more hesitant to invest in riskier assets like cryptocurrencies. This could reduce demand for BTC and ETH.
Instability:The cryptocurrency market tends to react strongly to signals from the Federal Reserve. These fluctuations may lead to short-term sell-offs, increasing volatility.
The impact of Jerome Powell's remarks has caused a short-term decline in BTC and ETH prices, reflecting the cryptocurrency market's sensitivity to macroeconomic factors. Investors will need to closely watch subsequent developments from the Fed and the global economic situation to evaluate future price trends.